Having appeared for the first time since the PwC tax scandal, Beattie claimed she raised issues about the culture within PwC and insisted there “needed to be an outcome” and accountability for those who used legal professional privilege (LPP) to dodge the tax office.

The inquiry delved into how members of PwC abused LPP to prevent the Australian Taxation Office (ATO) from accessing key documents for its investigation.

During the several hours of evidence, inquiry head and Labor MP Deborah O’Neill said it was a “considerable problem” Beattie did not follow up on concerns she raised with former CEO Luke Sayers.

MP Alex Hawkes added it seemed as if Beattie “briefed the board about a major problem”, but her evidence went on to suggest she then “virtually did nothing” to ensure the LPP breaches ended.

In the follow-up submission, Beattie said the tax sector needed more oversight because self-regulation was inadequate.

She also responded to the Treasury’s submission that regulatory oversight could be applied to LPP in Commonwealth investigations.

Beattie said it needed to be considered in light of “push” transactions, being transactions “effectively initiated by the advisor for taxation purposes, rather than driven by legitimate commercial needs”.

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She said this was a “longstanding issue” and would need careful consideration to determine the “balance of interests” between parties claiming LPP and the Tax Office’s request for information.

The submission also referred to a failure to produce relevant material in response to issues raised by the Tax Office.

Beattie said members of the tax group acted “contrary to the firm’s protocols and the terms of client engagements”, and this issue “goes to the appropriate use of LPP”.